Entrepreneurship

EntrepreneurshipStarting, Growing, Owning A Business2/5/2013BA: 3305: Entrepreneurship 1Feasibility Analysis

Outline of The Feasibility StudyThe Business IdeaThe Product/ServiceThe Industry Trends & StructureThe MarketNon-Monetary Resources NeededStartup Costs NeededFinancial Projections2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 2

The Feasibility ReportInternal ReportsExternal ReportsWhen to do one2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 3

Questions of the Feasibility ProcessIs there a large enough market to make the project possible.Is the project technically possible:In terms of technology availableIn terms of financial capabilityIn terms of other needed resources2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 4

Feasibility Process2/5/2013BA: 3305: Entrepreneurship 5DecisionGO!Business PlanNo GoRe-Evaluate

IdeaProductCustomerObjectivesMarket AnalysisIndustryMarket PotentialCompetitionResource RequirementsExperience/KnowledgeStartup CostsFixed & Variable Operating CostsCalculate Breakeven

The IdeaWhat is your product?What need does it fill?How does your product fill that need?Who are your customers?What are your personal objectives with this business?2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 6

Step 2From Idea to Market Analysis2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 7IdeaProductCustomerObjectivesMissionMarket AnalysisIndustryMarket PotentialCompetition

Market AnalysisWhat industry is the proposed venture in?What are industry trends & Characteristics?What market within the industry will you serve?What is the market potential within that market?How many customers are in that market?How many competitors are in that market?2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 8

Step 3From Market Analysis to Resource Requirements2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 9IdeaProductCustomerObjectivesMissionMarket AnalysisIndustryMarket PotentialBreakevenCompetitionResource RequirementsExperience/KnowledgeStartup CostsFixed & Variable Operating CostsCalculate Breakeven

Resource RequirementsExperience/KnowledgeStartup Cost RequirementsWhat are the fixed and variable operational costs?What price will you charge?Breakeven Analysis How much will you have to sell to break even?2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 10

Step 4: Decision2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 11BA: 3305: Entrepreneurship Decision

IdeaProductCustomerObjectivesMarket AnalysisIndustryMarket PotentialCompetitionResource RequirementsExperience/KnowledgeStartup CostsFixed & Variable Operating CostsCalculate Breakeven

DecisionDo you have the necessary experience or knowledge?Can you get the startup funds necessary?What level does the project break even? Does that seem realistic?2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 12

Reality Check2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 13BA: 3305: Entrepreneurship DecisionGO!Business PlanNo GoRe-Evaluate

IdeaProductCustomerObjectivesMarket AnalysisIndustryMarket PotentialCompetitionResource RequirementsExperience/KnowledgeStartup CostsFixed & Variable Operating CostsCalculate Breakeven

Much of the Feasibility requires ResearchWhat is going on within the industry?What is the market potential?Who are and how many competitors exist?Do you have the resources to start the venture?What is the breakeven analysis? Does it seem realistic?2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 14

Re-CapPurpose of the feasibility report.Questions to be answered:Is there a large enough marketDo I have the necessary resourcesThe next step.2/5/2013BA: 3305: Entrepreneurship - John A. Tatum, MBA 15